The hottest Zoomlion has high performance, high gr

Zoomlion: high performance growth, great overseas market potential

Zoomlion: high performance growth, great overseas market potential

China Construction machinery information

Guide: Zoomlion's previously disclosed annual report showed that the company achieved an operating revenue of 8.974 billion yuan in 2007, an increase of 92.67% year-on-year; The net profit was 1.333 billion yuan, a year-on-year increase of 176.43%. The industry generally believes that Zoomlion's operating performance is higher than expected; The main reason why the increase of net profit far exceeds the operating income is gross

Zoomlion's previously disclosed annual report showed that the company achieved an operating revenue of 8.974 billion yuan in 2007, an increase of 92.67% year-on-year; The net profit was 1.333 billion yuan, a year-on-year increase of 176.43%. The industry generally believes that Zoomlion's operating performance is higher than expected; The main reason why the increase of net profit far exceeded the operating income was the rise of gross profit margin and the decline of expense rate

cost pressure may be reflected in the second quarter

the fastest growing business of the company in 2007 was the concrete machinery business, with a revenue of 3.51 billion yuan, a year-on-year increase of 123.61%. With the rapid expansion of the scale, the thermal aging resistance of concrete machine materials has also been enhanced, and the gross profit margin of machinery business has reached 32.09%, an increase of 1.5 percentage points over the previous year. At the same time of revenue growth, the company's expenses were well controlled, with three expenses of 1.125 billion yuan, a year-on-year increase of 57.17%, and the proportion in the main revenue decreased from 15.4% of the previous year to 12.5%. Thanks to the increase of gross profit rate and the decrease of expense rate, the net profit margin of Zoomlion in 2007 was significantly increased to 14.9% from 10.4% last year

in the forecast of the first quarter report of 2008, the company has expected the net profit to increase by 50%-100% year-on-year. Some researchers pointed out that at the end of 2007, the raw materials and finished products in Zoomlion's inventory were 8.24 million yuan and 9.29 million yuan respectively, and the prepayment for purchasing raw materials and accessories also reached 378million yuan (deducting 116million yuan prepaid to Changsha Construction Machinery Institute). It can be estimated that the cost of Zoomlion's main business in the first quarter of this year was less affected by the rise in steel prices in the same period, and the cost pressure will be more reflected in the oil level in the second quarter and beyond

overseas market still has potential

Zoomlion pointed out in its annual report that although the company's overseas sales last year reached 1.02 billion yuan, an increase of 371.38% year-on-year. However, there is still a gap between overseas sales and competitors, and there is still great potential for overseas market expansion

in this regard, Xu Xingyue of Great Wall Securities pointed out that in recent years, the import amount of some products in the construction machinery industry has increased negatively, such as concrete machinery, road builders and graders, road rollers, pavers, etc., which shows that domestic products in these fields have achieved great advantages. Zoomlion is also the main manufacturer of such products. He predicted that the rapid growth of the export of the construction machinery industry in 2008 would slow down, but the range was limited, and the year-on-year growth rate of the export amount would still be more than 50%

in addition, in terms of truck cranes, the domestic market is basically monopolized by XCMG and Zoomlion, with a total market share of more than 70%; In terms of crawler cranes, Zoomlion has made breakthroughs in large tonnage

in fact, Zoomlion has been enriching the company's product structure and expanding its enterprise scale through extensive expansion in recent years. However, the annual report also admitted that after several years of leapfrog growth, the company's outsourcing and imported parts resources were extremely tight and failed to improve significantly during the reporting period. At the same time, collaborative resources have become a bottleneck, resulting in unstable quality of outsourced parts and some purchased parts, and it is difficult to improve efficiency significantly. Therefore, Zoomlion adopts the method of integrating resources, unifying the procurement platform of imported accessories, and selectively establishing long-term stable relations with key suppliers. Timely improve and optimize the design scheme, provide a variety of alternative accessories for reference, and strive to find a second scheme

the company predicts that the overall sales growth rate of construction machinery enterprises will remain at a certain level in 2008, but the market competition situation will also become increasingly fierce. In 2008, the company calculated that the photoelectric encoder would have pulse signal output and planned to achieve an operating revenue of 11.22 billion yuan and a net profit of 1.608 billion yuan. Industry insiders believe that the company's operation this year is expected to exceed this goal